Caging the leaders of the future

My journey back to school has made me realize the skill school forbade me from learning is the single most important one I use in my job: delegation.

I have been running a research company I founded for 5 years now, and no single skill I have learned matters to my leadership abilities more than delegation. The only reason our company thrives is that other people do things I could never do myself, and it would be self-destructive and short-sighted to even try to hog the work on any task.

However, I returned to law school to finish my degree, and felt the limitations of my student life fall again squarely on my shoulders. Every assignment, every class felt uncomfortably heavy almost immediately, not because they were meaningless or useless, but because I could not treat them like a problem seeking a solution. Like an obstacle for me to overcome with my greatest asset–my team.

This simple rule, that I must turn in only my own work, makes sense only in the sterile world of the bean counting metric junkies, who worry not about whether I build great things but whether I built them alone. No client has ever peered suspiciously over my work, suggesting that perhaps I may have gotten outside, illicit assistance. Or worse, Googled and found someone else’s solution.

I’m not saying that all schools must immediately revise their grading systems to teach leadership or fit my needs. Far from it–I am telling anyone else struggling under the burdens of leadership, your school simply cannot help you. Recognize that there is no way to prepare for real challenges by getting high grades on fake ones. And learn to value the skills of others, lest you drown in your own inbox and incompetence.

Japanese adoption

A recent article in the Economist describes the results from a study of an interesting Japanese custom. Traditionally (and according to the civil code until 1945), company ownership and leadership were passed on through primogeniture. This custom has continued to be practiced, and the study found solid evidence that family-managed companies outperform professionally managed companies. It could be argued that family unofficial training, continuity, and trust are at the root of this, but the authors find a different reason: adoption.

Japan and the US lead the world in adoption rate, but Japanese adoption is not necessarily what you would think. Over 90% of Japanese adoptions are of adults, who are usually men adopted into childless (or more specifically son-less) families for business purposes. This is also quite traditional, and since Japanese birth rates are extremely low, Japanese businessmen are likely to continue adopting talented, ambitious single men. This is often also accompanied by marriage to the daughter of the businessman (while women participate in business in Japan, they are more rarely the executives), which is referred to as mukoyoshi and combines familial with business ties.

This practice has the advantage of allowing for the trust, mutual investment, and long-term planning and teaching based on family relationship while avoiding the risk of having an unfit successor. In fact, in reading this, I am reminded of another culture’s custom of adoption: ancient Rome.

Ancient Rome also had a custom of adoption among its upper classes because of the prestige associated with old patrician family names and the incentives of inheritance laws (for a time it also served as a political means of a patrician gaining the tribuneship, as the Gracchi did). Similarly to the Japanese businessmen, adopted sons tended to excel (the earliest and best example is the Republican general Scipio Aemilianus), and it served as a method of political alliance and developing shared interest. It also became a typical method of succession for Roman emperors in the case that no son was available, a deal needed to be made between factions, or an emperor had a favored successor to whom he was not related. Adopted emperors included Trajan (adopted by Nerva as deal with the army, successful and beloved military leader), Hadrian (great builder and patron of the arts), and Marcus Aurelius (famed general and philosopher), and were generally well-reputed and effective leaders. In contrast, the sons of emperors (such as Domitian and Commodus, who were both infamously insane and harmful, or Maxentius, whose usurpation followed a blood-based claim) or blood-based successors (such as Caligula, who was blood-thirsty and childish, Nero, who was brutal and wasteful, and Elegabalus, who had was more interested in orgies than leadership).

It seems that the same potential reasons underlying Japanese business success through adoption were also at work in antiquity: emperors who were chosen and bred based on their abilities provided the continuity associated with heredity but with the advantage of meritocratic selection. This raises the question of whether this advantage has somehow been passed over by the Western world in those cases where we have avoided family-based succession in business (based on worries about nepotism and/or to gain the advantages of meritocratic selection). Even more interesting, does the adoption practice maintain the freedom of choice and opportunity found in Western careers while also conferring the ability to maintain trust and continuity that family-based succession offers?